Daily analysis of Gold for May 10, 2017

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Overview

Gold price has been fluctuating within a tight range since morning, keeping below 1,229.32. Please note that stochastic is losing its positive momentum gradually to reach the borders of the overbought areas. This supports the chances of a bearish reversal to resume the bearish trend. To keep the decline expected for the near sessions, the metal is waiting to test 1,208.92 level initially. Let me remind you that breaking this level will push the price down to 1,188.52 directly. Therefore, the negative scenario will remain valid for today. Please note that breaching 1,229.32 will enable the price to test the most important resistance in the short term at 1,254.56 before the next destination is determined. The expected trading range for today is between 1208.00 support and 1229.00 resistance.

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Daily analysis of Silver for May 10, 2017

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Overview

Silver price did not show any strong move since morning. So the metal is still hovering near 16.00 level, while stochastic is approaching from the overbought areas. This creates a negative factor that will make the price resume the bearish bias in the short term. To keep the bearish trend scenario valid for today, let me remind you that our next main target is located at 15.49. Holding below 16.56 is the most important condition to achieve the suggested targets, as breaching it will push the price to achieve positive targets that mainly begin at 17.43. The expected trading range for today is between 15.90 support and 16.30 resistance.

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Trading plan for EUR/USD and GBP/USD for May 10, 2017

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Technical outlook:

EUR/USD has followed our projected trajectory on May 08, 2017. The pair has dropped lower and looks to be completing an impulse already as labelled here. The pair has broken the support at 1.0875 and is looking to break the next support at 1.0850 levels before pulling back in a corrective manner. The wave count suggests that 5 waves are either completed or would be completed around 1.0850 levels, which would then terminate wave 1 of a higher degree as shown here. If this wave count holds true, a corrective rally (3 waves) should then resume and the potential move could be up to 1.0950/80 levels. Please note that the counter-trend rally should terminate below 1.1022 levels for the bearish structure to remain intact. Resistance lies at 1.1022 levels, while the support is seen at 1.0850 levels for now.

Trading plan:

Please remain short and continue to sell on rallies through 1.0950 levels with stop above 1.1022 levels and target at 1.0600 and lower.

GBP/USD chart setups:

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Technical outlook:

GBP/USD has tested today's high at 1.2987 levels before pulling back sharply. The pair trades at 1.2945 levels at the moment and should continue dropping lower. As to the wave counts, the highs at 1.2988 levels could be the termination of wave C of the corrective rally A-B-C labelled above, that began in October 2016. At a higher degree, the termination could be that wave (4) and wave (5) should be on the way lower towards 1.1900. Once the pair pushes below 1.2800 levels, it would be more interesting to watch acceleration lower. On the flip side, only a push above 1.2988 levels would delay matters further for a bearish reversal to resume. The strong resistance is found at 1.2988 levels while support is now seen at 1.2830 levels.

Trading plan:

Please remain short now, with stop above 1.2988 levels. The target is open.

Fundamental outlook:

With Mr Draghi's speech over a few hours back, there are no other major events for the above-described pairs. Watch out for the central cank of New Zealand decision around 05:00 pm EST.

Good luck!

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Fundamental Analysis of AUD/USD for May 10, 2017

AUD/USD has been under bearish pressure since the break below 0.7500. Currently, the pair is on the way to retest that level as resistance. Yesterday, Australia released a negative Retail Sales report which revealed contraction by 0.1% instead of the expected 0.3%. Annual Budget report was also posted which weakened the the aussei dollar. The negative report and a dovish nature of the budget made AUD lose some grounds yesterday. On the other hand, the US had a positive Import Prices report which showed a rise of 0.5%, stronger than the expected moderate growth of 0.2%. This did not quite help USD to gain some strength over AUD today. USD Crude Oil Inventories report is going to be published today which is expected to show a drawdown of -2.0M from -0.9M in the previous week. The pair is to trade with higher volatility after the Crude Oil Inventories report is published.

Now let us look at the technical chart. The price has shown some bullish intervention today after bearish pressure in this pair. The pair is likely to retest 0.7500 as resistance before showing some more bearish pressure in this pair to move down towards 0.7160 support level. Currently, the bias is bearish in this pair and it will continue until the price breaks above 0.7550 with a daily close.

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Fundamental Analysis of USD/CAD for May 10, 2017

After an impulsive non-volatile bullish trade, USD/CAD has bounced off from 1.3790 resistance level recently. The pair is currently trading with higher volatility but bears seem to gain some strength in the coming days. Canada posted Building Permits report yesterday which was came out with a negative figure at -5.8% which was expected to be at 4.2%. This did affect the CAD gains recently. On the other hand, the US released Import Price report which was published with a positive figure of 0.5% which was expected to be at 0.2%. Besides, Crude Oil Inventories report is going to be published in a few hours which is expected to show a drawdown of -2.0M from -0.9M previously. Higher volatility is expected during the Crude Oil news today. If the US news comes positive, we might see CAD losing more grounds today.

Now let us look at the technical chart. The price has shown bullish rejection on yesterday's daily candle. Today, bears have already shown some pressure in this pair. If we see a daily close with a bearish candle, then we will be looking forward for the price to move down towards 1.3600 support level.

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USD/CAD intraday technical levels and trading recommendations for May 10, 2017

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Since April 2016, the USD/CAD pair has been trending upward within the depicted ascending channel.

In December 2016, a bullish breakout above 1.3300 (50% Fibonacci level) was expected to allow a further advance toward 1.3700-1.3750 (the upper limit of the depicted channel).

However, significant bearish rejection was expressed around 1.3580 (recently established top).

During the bearish pullback, the price level of 1.3300 (50% Fibonacci Level) failed to provide enough support to the pair.

This allowed a further bearish movement toward the price level of 1.2970 (61.8% Fibonacci level) where a valid BUY entry was offered in February 2017.

A few weeks ago, the bullish breakout above 1.3300 (50% Fibonacci Level) enhanced a further advance toward 1.3440 and 1.3580.

As long as, the USD/CAD pair maintains bullish trading above 1.3580 (confluence of prominent tops), expected bullish target would be located around 1.3950 (the upper side of the depicted channel and FE 100%).

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NZD/USD Intraday technical levels and trading recommendations for May 10, 2017

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In December 2016, the NZD/USD pair was trapped within the depicted price range (0.6860-0.6990) until a bullish breakout occurred.

A bullish breakout above 0.6960-0.7000 allowed the pair to head toward the price level of 0.7100 (the key level) which failed to provide sufficient bearish pressure on the pair.

Bullish persistence above 0.7100 allowed a further advance toward 0.7250-0.7350 (Sell-Zone) where the bearish price action was expected.

Bearish persistence below 0.7250 allowed a further decline toward 0.7100 then 0.6960 which failed to provide enough support for the pair.

That is why a further fall was expected toward 0.6860 (the lower limit of the depicted BUY zone) where a bullish position was suggested in previous articles.

Recently, a bullish breakout was achieved above the depicted key level (0.6960). However, the pair failed to express enough bullish momentum above 0.7050.

That's why, the NZD/USD pair became trapped within the depicted consolidation range (0.6860-0.6960) once again.

Note the depicted bullish 1-2-3 pattern remains valid as long as bullish fixation above 0.6900-0.6850 is maintained on a daily basis.

On the other hand, bullish breakout above 0.6960 is needed to allow further bullish movement. Expected projection target for the pattern is located around 0.7250.

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Analysis of gold for May 10, 2017

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Recently, gold has been trading upward. The price tested the level of $1,225.65. Anyway, I found a false breakout of yesterday's high, which is a sign that buying looks risky. My advice is to watch for potential selling opportunities. I also found a reversal bar on the 30M time frame, which is another sign of weakness. The downward targets are set at $1,220.90 and $1.214.45.

Resistance levels:

R1: $1,226.00

R2: $1,227.20

R3: $1,229.00

Support levels:

S1: $1,222.00

S2: $1,221.00

S3: $1,219.45

Trading recommendations for today: watch for potential intraday selling opportunities.

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EUR/JPY analysis for May 10, 2017

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Recently, the EUR/JPY pair has been trading sideways at the price of 123.72. According to the 1H time frame, I found a fake breakout of yesterday's low, which is a sign that selling looks risky. My advice is to consider potential buying opportunities. The short-term trend is bullish. Upward targets are set at the price of 124.30 and 124.50.

Resistance levels:

R1: 123.80

R2: 123.90

R3: 124.00

Support levels:

S1: 123.60

S2: 123.50

S3: 123.40

Trading recommendations for today: consider potential intraday buying opportunities.

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Global macro overview for 10/05/2017

Global macro overview for 10/05/2017:

Germany's Industrial Production data increased for the second consecutive month. According to the Federal Statistics Office, the production orders in Germany increased 1.0% in March, which was above market expectations of 0.7%. Nevertheless, the overall growth is still 2.5% lower than a month ago and the main reason behind this decrease is mainly due to weaker domestic demand, which plunged 3.8%. On the other hand, exports surged higher again with a 4.8% advance than a month ago. In conclusion, the data shows that the most powerful economy of the Eurozone still develops at a healthy pace and there are no signs of any significant slowdown just yet.

Let's now take a look at the EUR/GBP technical picture on the daily timeframe. The market is still trading below the golden trend line resistance and below all important moving averages as well. After a high at the level of 0.9268, no other higher high was made, so after the period of horizontal price action is gone, the next move should be to the downside. Nevertheless, if bears want to regain control over this market, then they must break out below the 0.8302 support in an impulsive fashion. Otherwise, the price will bounce and get back into the trading range.

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Global macro overview for 10/05/2017

Global macro overview for 10/05/2017:

Another report on the US jobs market comes from JOLTs Job Openings data. The survey recorded an increase of job openings to 5,743k at the end of March from a revised 5,682k in the previous month, which was originally reported as 5,745k. Moreover, the data were better than market expectations of 5,670k jobs. The lay-off range was at the level of 2.1%, unchanged from the month before. In conclusion, together with a strong NFP Payrolls data from Friday, the current job market in the US is still strong and the jobless claims remain at historically low levels (the lowest level since 2000). This conditions on the job market are supportive for the interest rate hike in June.

Let's now take a look at the USD/JPY technical picture on the H4 timeframe. The price has broken above the 78%Fibo at the level of 113.93 and currently is trading around this level. Please be aware that the trading conditions are now overbought and there is a visible bearish divergence between the price and the momentum oscillator. The immediate support is seen at the level of 113.62 and any violation of this level would lead to the test of the next important support at the level of 113.05.

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Ichimoku indicator analysis of USDX for May 10, 2017

The US dollar index bounced yesterday, as expected, and reached our first target at 99.50 where the 38% Fibonacci retracement resistance is found. A clear daily break above 99.60 will open the way towards 100.20 as the price has broken above the 4 hour cloud resistance.

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The USD index is above the 4 hour cloud resistance but has stopped the rise right at the 38% Fibonacci level. We could see a pullback towards the cloud support at 99 where the short-term support is found. The next important resistance lies at the 61.8% Fibonacci retracement. Only a break above it will increase the chances that a medium-term low is in.

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Red lines - triangle

Black line - long-term trend line support

USDX remains inside the triangle pattern and above the weekly Kumo. The price is bouncing as expected and could even reach the upper triangle boundary resistance at 100.30. Only a break above the 100.30 and 101.30 will confirm that an important low is forming and that a new up trend has started.

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Ichimoku indicator analysis of gold for May 10, 2017

Gold price continues to make lower lows and lower highs. Trend remains bearish. Gold has limited downside. I still prefer bullish positions at the current levels.

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Blue lines - bearish channel

Despite being still inside the bearish channel and below both the tenkan- and kijun-sen, the RSI divergence signals that gold is just above previous lows at $1,194. I believe there are a lot of chances for a move higher at least towards the Kumo resistance at $1,250.

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Red line -long-term resistance trend line

Gold price remains inside the weekly cloud but above the weekly kijun-sen. Price has held above the lower Kumo boundary and this is a positive sign. If Gold manages to make a higher low relative to the $1,194 low in March, we could expect a strong upward reversal start from around current levels.

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Trading plan for 10/05/2017

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Trading plan for 10/05/2017

Technical analysis of USD/CHF for May 10, 2017

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Overview:

  • The USD/CHF pair continues to move upwards from the level of 0.9991. Today, the first support level is currently seen at 0.9991, the price is moving in a bullish channel now. Furthermore, the price has been set above the strong support at the level of 0.9991, which coincides with the 50% Fibonacci retracement level. This support has been rejected three times confirming the veracity of an uptrend. According to the previous events, we expect the USD/CHF pair to trade between 0.9991 and 1.0093. So, the support level is seen at 0.9991, while daily resistance is found at 1.0093. Therefore, the market is likely to show signs of a bullish trend around the spot of 0.9991. In other words, buy orders are recommended above the spot of 0.9991/1.0000 with the first target at the level of 1.0093; and continue towards 1.0128. However, if the NZD/USD pair fails to break through the resistance level of 1.0128 today, the market will decline further to 0.9949.
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Trading plan for 10/05/2017

Trading plan for 10/05/2017:

The Dollar is losing its value against other G-10 currencies today. EUR/USD is struggling to return above 1.09, USD/JPY has been pushed back at 114.00, which was conducive to information on plans for further North Korea's nuclear missions. The API report showed a significant decrease in oil inventories. The WTI has risen today by over 0.5%. After Wall Street records, trading sentiment was positive during the Asian session.

On Wednesday 10th of May, the event calendar will be busy with important economic releases like Industrial Production data from Italy and France, ECB President Mario Draghi speech in the Dutch parliament, crude oil inventories and interest rate decision from the Reserve Bank of New Zealand.

EUR/USD analysis for 10/05/2017:

The Industrial Production data from Italy and France is scheduled for release at 06:45 am GMT and market participants expect an increase in production in France from -1.6% to 1.25 for the reported month and decrease in production in Italy from 1.0% to 0.3% for the reported month. If the projection is right, then the French output will expand in monthly terms for the first time this year. The question remains whether the problems in Italy are just a correction or not only a banking industry is digging in more trouble. Mario Draghi's speech in the Dutch parliament might provide further clues regarding the ECB monetary policy and QE extension.

Let's now take a look at the EUR/USD technical picture on the H4 timeframe. The market has broken below the golden trend line support and now is trading close to the important technical support at the level of 1.0851. Any violation of this level would lead to an immediate test of the level of 1.0820 and a possible gap fill. There is no divergence visible yet and the market will get close to the oversold conditions soon.

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NZD/USD analysis for 10/05/2017:

The Reserve Bank of New Zealand interest rate decision and statement are scheduled for release at 09:00 pm GMT. Market participants expect the RBNZ to leave the interest rate unchanged at the level of 1.75%, which will still be the highest interest rate among all major central banks all over the world.

Let's now take a look at the NZD/USD technical picture on the H4 timeframe. The price is trading inside of a tight range between the levels of 0.6879 - 0.6946, just around all major moving averages. If the RBNZ will leave the interest rate unchanged, then NZD/USD should rally higher towards the next technical resistance at the levels of 0.6969 and 0.6981. On the other hand, an unexpected interest rate cut would result in immediate sell-off towards the level of 0.6838 and below.

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Market snapshot: Crude Oil is still trading in a range, waiting for data?

After yesterday's API inventories data that reported a 5.79 million barrels decrease in stockpiles, which exceeded greatly the consensus of an almost 1.8 million barrels decrease. The 4.16 million drawdown was seen last week. Oil prices have hardly responded to such statistics. The market is still trading below the key resistance at the level of $47.10 - $47.29. Maybe today's inventories data will trigger some movement towards one of the important levels.

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Technical analysis of NZD/USD for May 10, 2017

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Overview:

  • The bias remains bullish from the support level of 0.6847. The NZD/USD pair will probably continue to move upwards from the level of 0.6847. The first support level is currently seen at 0.6847, the price is moving in a bullish channel now. The level of 0.6847 coincides with the double bottom, which is expected to act as a minor support today. Besides, the double bottom is seen at the point of 0.6847. Since the trend is above the level of 0.6847, the market is still in an uptrend because the major support is seen at the level of 0.6847. Furthermore, the trend is still showing strength above the moving average (100). Thus, the market is indicating a bullish opportunity above the mentioned support levels, for that the bullish outlook remains the same as long as the 100 EMA is heading upwards. Therefore, strong support will be found at the level of 0.6847 providing a clear signal to buy with a target seen at 0.6998. If the trend breaks the first resistance at 0.6998, the pair will move upwards continuing the bullish trend development to the level 0.7053 in order to test the double top. Besides, it should be noted that the pivot is seen at 0.6922. However, the price spot of 0.6847 and 0.6871 remains a significant support zone. Thus, the trend is still bullish as long as the level of 0.6847 is not broken.
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Technical analysis of NZD/USD for May 10, 2017

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NZD/USD is expected to trade with bullish bias above 0.6925. The pair is posting a pullback and is currently testing the support of its 50-period moving average. Meanwhile the 20-period moving average is above the 50-period one, and the relative strength index is around its neutrality area at 50, lacking downward momentum.

As long as 0.6925 is not broken below, further upside is expected with 0.6875 and 0.6855 as the next targets.

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.6875. A break below this target will move the pair further downwards to 0.6855. The pivot point stands at 0.6925. If the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.6940 and the second one at 0.6955.

Resistance levels: 0.6940, 0.6955, and 0.6970

Support levels: 0.6875, 0.6855, and 0.6800

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Elliott wave analysis of EUR/NZD for May 10, 2017

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Wave summary:

We continue to look for a little more downside closer to 1.5645 to complete wave ii/ and set the stage for the next impulsive rally in wave iii/ to at least 1.6655. Short term, we expect minor resistance at 1.5861 to be able to cap the upside for the test of 1.5645.

Longer term, we continue to look for much higher levels with 1.9702 seen as the long-term minimum target.

R3: 1.6020

R2: 1.5958

R3: 1.5861

Pivot: 1.5800

S1: 1.5708

S2: 1.5645

S3: 1.5554

Trading recommendation:

We will buy EUR at 1.5665 or upon a break above 1.5861.

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Elliott wave analysis of EUR/JPY for May 10, 2017

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Wave summary:

With the break above resistance seen at 124.02, the correction in wave B shifted to a flat correction instead of a double zig-zag correction as originally expected. This indicates yet another decline towards at least 122.94 in wave c of B and likely just below 122.94 to complete this correction and set the stage for more upside in wave C. Short term, a break below minor support seen at 123.70 will confirm the continuation lower to 122.94 to complete wave c of B.

R3: 124.52

R2: 124.26

R1: 124.16

Pivot: 124.00

S1: 123.70

S2: 123.60

S3: 123.35

Trading recommendation:

Our stop at 124.15 was hit for a small loss. We will wait for a EUR-buying opportunity near 122.94.

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Technical analysis of USD/JPY for May 10, 2017

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USD/JPY is turning down. The pair failed to break above its nearest resistance at 114.05, and is now extending its losses. The process of lower highs and lows has been confirmed on the chart. Besides, the relative strength index is bearish and calls for a further downside. To conclude, as long as 114.05 is not surpassed, look for a new pullback to 113.50 and 113.10 in extension.

To sum up, as long as 112.85 is not broken, the pair is likely to advance to 113.45 and then to 113.65.

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 113.50. A break below this target will move the pair further downwards to 113.10. The pivot point stands at 114.05. If the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 114.35 and the second one at 114.70.

Resistance levels: 114.35, 114.70, and 115.00

Support levels: 113.50, 113.10, and 112.65

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Technical analysis of USD/CHF for May 10, 2017

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USD/CHF is expected to continue its upside movement. The pair recorded a succession of higher tops and higher bottoms since May 8 and is holding on the upside. The rising 50-period moving average is playing a support role and maintains the upside bias. The relative strength index is above its neutrality level at 50 and lacks downward momentum.

The U.S. dollar strengthened across the board as investors shifted focus back to higher U.S. interest rates. Federal Reserve Bank of Kansas City President Esther George pointed out that the U.S. economy is on track to grow at "a slightly above-trend rate", and that the U.S. central bank should press forward with interest-rate increases to prevent overheating in the economy.

As long as 1.0035 holds on the downside, look for a further advance toward 1.0095 and even 1.0125 in extension.

Resistance levels: 1.0005, 1.0025, and 1.0075

Support levels: 0.9930, 0.9905, and 0.9870

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Technical analysis of GBP/JPY for May 10, 2017

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GBP/JPY is expected to trade with bullish bias above 146.80. The pair is posting a pullback and is currently testing the support of its 50-period moving average. Meanwhile the 20-period moving average is above the 50-period one, and the relative strength index is around its neutrality area at 50, lacking downward momentum.

As long as 146.80 is not broken below, further upside is expected with 147.85 and 148.20 as the next targets.

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 147.85 and the second one at 148.20. In the alternative scenario, short positions are recommended with the first target at 146.35 if the price moves below its pivot points. A break of this target may push the pair further downwards, and one may expect the second target at 145.75. The pivot point lies at 146.80.

Resistance levels: 147.85, 148.20, and 148.65

Support levels: 146.35,145.75, and 145.00

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Technical analysis of EUR/USD for May 10, 2017

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When the European market opens, some economic data will be released such as German 10-y bond auction, Italian industrial production, French trade balance, and French industrial production. The US will also present some economic news such as the Federal Budget Balance, 10-y bond auction, crude oil inventories, and import prices. So, amid these reports EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Breakout BUY Level: 1.0937.

Strong Resistance:1.0931.

Original Resistance: 1.0920.

Inner Sell Area: 1.0909.

Target Inner Area: 1.0884.

Inner Buy Area: 1.0859.

Original Support: 1.0848.

Strong Support: 1.0837.

Breakout SELL Level: 1.0831.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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Technical analysis of USD/JPY for May 10, 2017

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In Asia, Japan will release the leading indicator and the BOJ Summary of Opinions while the US will unveil the reports on federal budget balance, 10-y Bond Auction, crude oil inventories, and import prices m/m. So there is a probability the USD/JPY will move with low to medium volatility during this day.

TODAY'S TECHNICAL LEVELS:

Resistance. 3: 114.44.

Resistance. 2: 114.22.

Resistance. 1: 114.00.

Support. 1: 113.72.

Support. 2: 113.50.

Support. 3: 113.28.

Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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Daily analysis of major pairs for May 10, 2017

EUR/USD: This pair moved southwards on Monday and Tuesday, but the bias on the market remains bullish. The price has come down by 120 pips this week, after testing the resistance line at 1.1000 (which has become a formidable barrier to the future rallies). The EMA 11 would soon cross the EMA 56 to the downside, and that would generate a "sell" signal in the market.

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USD/CHF: The dollar-frank pair went upwards on Monday and Tuesday in the contest of a downtrend. A break of the support level at 1.0000 to the upside shows that there is a threat to the recent bearish bias. Since price is now heading towards the resistance level at 1.0100, a new bullish bias is likely to form soon, especially when the resistance line is breached to the upside.

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GBP/USD: There is a huge bullish confirmation pattern on the 4-hour chart, and further bullish movement is possible this week. Right now there is a sideways movement in the market, but a breakout is imminent, which would most probably favor bulls. The distribution territories at 1.3000 and 1.3050 could still be breached.

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USD/JPY: This pair has gone up by 165 pips this week, and has added 440 pips since April 24, 2017. The price is now around the demand level at 114.00 and it may go towards the supply levels at 114.50 and 115.00. The USD has gained some strength, as it was forecasted at the beginning of this week. Further bullish movement is possible.

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EUR/JPY: There remains a bullish signal on the EUR/JPY despite the fact that the market has not gone in a directional mode this week. The EMA 11 is above the EMA 56, and the RSI with period 14 is above the level of 50, showing a clean bullish outlook on the market. Further bullish movement is possible today or tomorrow.

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Daily analysis of USDX for May 10, 2017

USDX continues to strengthen in the short term and it's approaching the 100.00 handle. With a consolidation above the 200 SMA at H1 chart, we can expect further rallies to reach that psychological zone. As the current move was done within an impulse, a pullback can happen towards the support zone of 99.23. MACD indicator is turning flat, calling for sideways in the index.

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H1 chart's resistance levels: 99.63 / 99.97

H1 chart's support levels: 99.23 / 98.77

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the USD index breaks a bullish candlestick; the resistance level is at 99.63, take profit lies at 99.97 and stop loss is at 99.28.

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Daily analysis of GBP/USD for May 10, 2017

The pair had a bearish session during Tuesday but it remained above the 200 SMA at H1 chart, which still provides a nice dynamic support across the board. The key resistance of 1.2957 is still a hurdle to overcome in order to reach the psychological area of 1.3000. That scenario is likely to prove valid, as the price action isn't showing new lower low patterns' formations.

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H1 chart's resistance levels: 1.2957 / 1.3029

H1 chart's support levels: 1.2855 / 1.2652

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the GBP/USD pair breaks a bullish candlestick; the resistance level lies at 1.2957, take profit is at 1.3029 and stop loss is at 1.2887.

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AUD/NZD still testing major support, remains bullish

AUD/NZD is now testing the major support at 1.0675 (Fibonacci retracement, Fibonacci extension, bullish divergence, horizontal overlap support) and we expect a bounce above this level to at least 1.0817 resistance (Fibonacci retracement, horizontal pullback resistance).

Stochastic (34,5,3) is seeing the strong support above 1.3% from which we expect a bounce Besides, it sees a bullish divergence vs the price, signalling that a bounce is impending.

Correlation analysis: A strong AUDUSD and a weak NZDUSD means AUDNZD would be in for a strong bullish run which is what we're expecting today.

Buy above 1.0702. Set stop loss at 1.0632 and take profit at 1.0817.

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NZD/USD forms a nice reversal, remains bearish

NZD/USD has bounced further up, forming a nice reversal below the strong resistance at 0.6940 (Fibonacci retracement, Fibonacci extension, Elliott wave theory) and we expect a drop below this level towards the support at 0.6889 (Fibonacci retracement, horizontal overlap support).

Stochastic (34,5,3) is seeing major resistance below the 95% level from which we expect a further drop.

Correlation analysis: NZDUSD and AUDUSD are positively correlated which means that they usually move together in the same direction. We expect a drop in NZDUSD and a rise in AUDUSD which means that one should better be caution on this trade.

Sell below 0.6940. Set stop loss at 0.6971 and take profit at 0.6889.

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